Carbon Capture & Storage (CCS)

Transcription

1 Carbon Capture & Storage (CCS) The Role of Subsidies to Facilitate Transitions to Low-Carbon Technologies Berlin 12 november 2009 Bjarne Korshøj Vice President, Head of CCS Photo: Hans Blomberg. All rights reserved by Vattenfall

2 Vattenfall: A Leading European Energy Company Europe s fifth largest generator of electricity and the largest producer of heat Net sales 2008: EUR 15,041 million Vision: To be a leading European energy company Operations in Sweden, Finland, Denmark, Germany, Poland, the Netherlands, Belgium and the UK with a total of 7.4 million electricity customers and 5.6 million network customers Electricity: generation, transmission, distribution and sales Heat: production, distribution and sales Gas: distribution and sales Energy trading and lignite mining Consulting and contracting activities in the energy sector 39,000 employees Vattenfall AB is wholly owned by the Swedish state 2

3 Making Electricity Clean 0 % 20 % 50 % 90 % Vattenfall s goal: 3 % emission reduction % emission reduction Vision: CO 2 -neutral Technology development? - Political factors? - Economic factors? Year 0 for EEC and Kyoto

4 Three Technologies One Strategy Significantly increase investments in lowemitting energy generation - Renewables - Nuclear - Coal/Gas with CCS Accelerate business and technological development Promote incentives for investments in low-emitting technologies 4

5 The Concept of CCS The idea is to capture carbon dioxide from a coalfired power plant, compress it and permanently store it deep underground The storages are of the same kind of structures that oil and gas are extracted from - a porous rock with a sealing cap on top CCS is needed to reach the target of 50 percent reduction and CO2 neutrality The targets can t be met with CCS alone

6 CCS A Global Perspective global electricity supply The world will not stop using fossil fuels. Others 2.1% Coal is the one fossil fuel which combines the greatest potential with the strategic optimum Coal enjoys a global renaissance. CCS is THE key technology for developing a CO 2 lean energy system based on the reality of fossil fuels especially coal Hydro 16.1 % Nuclear 15.7 % Fossil fuels 66.1%

7 CCS Our Roadmap Commercial concept: MW el Test rig: MW th < 3 million Pilot plant: 30 MW th 70 million Demonstration plant: MW el Conceptual investigations Theoretical studies Research Basic principles Combustion characteristics Demonstration of the process chain Interaction of components Validation of basic principles and scale-up criteria Long term characteristics Non-commercial Verification and optimization of the component choice, the process and reduction of risks Must be commercially viable incl. subsidies Competitive in the market at that time No subsidies

8 Oxyfuel Pilot Plant in Schwarze Pumpe» operating hours oxyfuel: 3.100» operating hours air mode: Investment: approx. 70 million plus operating» hours oxyfuel: expanses of 10 million p.a.» captured amount of CO 2 : t

9 Strategic Goals of the CCS Demo Project Use the knowledge from the pilot plant at Schwarze Pumpe to build and operate a demonstration plant which guarantees the knowledge to erect and operate the first generation of commercial CCS power plants. Technically and economically validate the entire CCS chain including the demonstration of two capture technologies, Oxyfuel and post-combustion capture, as well as safe CO2 transport and storage. Increase acceptance of CCS technology in society and politics, and provide confidence in a safe technology. Contribute to Vattenfall s overall ambition of Making Electricity Clean by means of reducing specific CO 2 emissions from Vattenfall s operations by 50% in 2030, and being climate-neutral in 2050

10 Demo Plant Jänschwalde by Numbers Existing plant, 3000 MW in total, 6 x 500 MW Units Feasibility Study completed (April 2009) Installation of two CCS Technologies: Oxyfuel (equivalent to 260 MW el ) Post combustion capture (equivalent to 125 MW el ) Up to 2.7 million t CO 2 capture p.a. Real carbon reduction Planning process initiated Assessment of various potential storage sites Start of operation is planned by middle of 2015

11 CCS Concept Jänschwalde

12 Storage Options I. Altmark EGR pilot project in cooperation with Gaz de France (pipeline 300 km) II. Brandenburg Storage in deep saline aquifers (pipeline 50/140 km)

13 CCS Costs The cost of CO 2 abated for the CCS demo project Jänschwalde will be on the lower end of this range. In the best case it will be approx. 55. Under consideration of the scale up effect and efficiency improvements, that are expected until the commercial introduction in 2020 Vattenfall is confident to reduce the costs per abated t of CO 2 by more than 50%. => Source: McKinsey & Company, Carbon Captur & Storage Assessing the Economics 2008 Funding is essential for the demonstration phase. In the commercial phase, no further stimulation is needed as the carbon price will be sufficiant for the costs.

14 3-fold Challenges 1. Legal framework: speedy transposition of CCS directive (2009/31/EC) 2. Financing: Jänschwalde demonstration plant project: investment costs ~ million 180 Mio: EEPR???? Mio: NER300 (Art. 10 a para 8) ETS directive (2009/29/EC) - establishing the framework in Project selection in 2010 => is important to keep the timeline 2015 realistic up to million: MS, Vattenfall & possible partners max 50 % 3. Acceptance: Private: information office (Bürgerbüro Beeskow), IZ Klima Public: role of government/politicians, science & research (universities, PIK, GfZ, etc)

15 Thank You for Your Interest Presentation title The Vattenfall Group Creating value for the future

16 Option 1: Post-Combustion Capture New technology introduced by CCS

17 Option 2: IGCC New technology introduced by CCS

18 Option 3: Oxyfuel condensate process steam economiser New technology introduced by CCS